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Chapter 2: Applying Excel: Exercise (Part 2 of 2) 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: 1 2 3 4 A Chapter 2: Applying Excel Cost summary for Job 408 5 6 7 8 Direct labor cost Machine-hours Direct labor-hours Direct materials cost Selling price for Job 408 $ $ Selling price for Job 408 B Department Selling price for Job 408 Milling C Assembly 60 9 580 $ 162 $ In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 3 20 270 340 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 5,000 machine-hours? (Round your final answer to 2 decimal places.) 4. Restore the total number of machine-hours in the Assembly Department to 3,000 machine-hours. And keep the job data the same as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)

Chapter 2: Applying Excel: Exercise (Part 2 of 2) 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: 1 2 3 4 A Chapter 2: Applying Excel Cost summary for Job 408 5 6 7 8 Direct labor cost Machine-hours Direct labor-hours Direct materials cost Selling price for Job 408 $ $ Selling price for Job 408 B Department Selling price for Job 408 Milling C Assembly 60 9 580 $ 162 $ In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 3 20 270 340 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 5,000 machine-hours? (Round your final answer to 2 decimal places.) 4. Restore the total number of machine-hours in the Assembly Department to 3,000 machine-hours. And keep the job data the same as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information Chapter 2: Applying Excel This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5: Chapter 2: Applying Excel: Exercise (Part 2 of 2) 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: A Chapter 2: Applying Excel 1 2 3 4 5 Machine-hours 6 7 8 Cost summary for Job 408 Direct labor-hours Direct materials cost Direct labor cost Selling price for Job 408 $ $ Selling price for Job 408 B Department Selling price for Job 408 Milling C Assembly 60 9 580 $ 162 $ In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 3 20 270 340 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 5,000 machine-hours? (Round your final answer to 2 decimal places.) 4. Restore the total number of machine-hours in the Assembly Department to 3,000 machine-hours. And keep the job data the same as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)
Transcribed Image Text:Required information Chapter 2: Applying Excel This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5: Chapter 2: Applying Excel: Exercise (Part 2 of 2) 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: A Chapter 2: Applying Excel 1 2 3 4 5 Machine-hours 6 7 8 Cost summary for Job 408 Direct labor-hours Direct materials cost Direct labor cost Selling price for Job 408 $ $ Selling price for Job 408 B Department Selling price for Job 408 Milling C Assembly 60 9 580 $ 162 $ In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 3 20 270 340 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 5,000 machine-hours? (Round your final answer to 2 decimal places.) 4. Restore the total number of machine-hours in the Assembly Department to 3,000 machine-hours. And keep the job data the same as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)
EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Milling Department Overhead Cost (Y): = $390,000+ ($2.00 per MH x 60,000 MHS) = $390,000+ $120,000 = $510,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: $510,000 = = 60,000 machine-hours $8.50 per machine-hour Step 4: Calculate the total job cost for Job 407. Direct materials. Direct labor Assembly Department Overhead Cost (Y): = $500,000 + ($3.75 per DLH x 80,000 DLHS) = $500,000+ $300,000 = $800,000 Manufacturing overhead applied Total cost of Job 407 Step 5: Calculate the selling price for Job 407. Total cost of Job 407 Markup ($2,485 x 75%) Selling price of Job 407 = Step 3: Calculate the amount of overhead applied from both departments to Job 407. Milling Department: Overhead Applied to Job 407 = $8.50 per MH x 90 MHs = $765 = Assembly Department Overhead Rate: $800,000 80,000 direct labor-hours $10.00 per direct labor-hour Assembly Department: Overhead Applied to Job 407 = $10.00 per DLH x 20 DLHs = $200 Milling Assembly $800 $370 $ 70 $280 $765 $200 $2,485.00 1,863.75 $4,348.75 Total $1,170 350 965 $2,485
Transcribed Image Text:EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Milling Department Overhead Cost (Y): = $390,000+ ($2.00 per MH x 60,000 MHS) = $390,000+ $120,000 = $510,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: $510,000 = = 60,000 machine-hours $8.50 per machine-hour Step 4: Calculate the total job cost for Job 407. Direct materials. Direct labor Assembly Department Overhead Cost (Y): = $500,000 + ($3.75 per DLH x 80,000 DLHS) = $500,000+ $300,000 = $800,000 Manufacturing overhead applied Total cost of Job 407 Step 5: Calculate the selling price for Job 407. Total cost of Job 407 Markup ($2,485 x 75%) Selling price of Job 407 = Step 3: Calculate the amount of overhead applied from both departments to Job 407. Milling Department: Overhead Applied to Job 407 = $8.50 per MH x 90 MHs = $765 = Assembly Department Overhead Rate: $800,000 80,000 direct labor-hours $10.00 per direct labor-hour Assembly Department: Overhead Applied to Job 407 = $10.00 per DLH x 20 DLHs = $200 Milling Assembly $800 $370 $ 70 $280 $765 $200 $2,485.00 1,863.75 $4,348.75 Total $1,170 350 965 $2,485
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